News Highlights: Top Global Markets News of the Day - Thursday at 1 AM ET

Benchmark share market indices Sensex and Nifty gave up early gains to fall deep into red, extending previous five sessions’ losses and hovering near five-month lows. NSE Nifty 50 fell below the crucial 23,500-mark, and BSE Sensex fell another 200 points today, losing about 2,900 points in six sessions.

Investors remained cautious amid persistent selling pressure and fragile market sentiment on Dalal Street. After hitting five-month lows the previous day, the indices opened in the green but quickly lost momentum.

At 11:25 am, the Sensex was down 203.24 points or 0.26 percent at 77,487.71. The Nifty was down 51.60 points at 23,507.40, having briefly dipped below 23,500 to touch the day's low of 23,486. Market breadth remained in favour of gainers, with 1,800 shares advancing, 1,424 shares declining, and 94 shares unchanged.

The recent downturn has seen the Nifty plunge more than 10 percent from its September peak of 26,277.35, firmly entering correction territory amid sustained selling by foreign portfolio investors. The Sensex has shed about 3.4 percent, in six sessions, while the Nifty has lost nearly 1,000 points, or 4 percent, during this period.

The correction comes amid growing investor concerns over high valuations and macroeconomic uncertainties. Analysts attribute the latest downturn to persistent foreign investor outflows, weak corporate earnings, and rising inflation. Since late September, foreign portfolio investors have withdrawn approximately $14 billion from Indian equities, according to Reuters data.

Adding to the challenges, global headwinds have exacerbated pressure on emerging-market assets. A strengthening US dollar, bolstered by expectations of pro-growth economic policies under the incoming administration of US President-elect Donald Trump, has added strain to markets.

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said that there is pressure from the US dollar index being at 106.61 and the 10-year bond yield at 4.48 percent. These are significant hurdles for Indian equities.

Corporate earnings in India have also struggled to reassure markets, with several companies posting their weakest quarterly results in over four years. "Market conditions remain fragile," said Dhupesh Dhameja, Derivatives Analyst at SAMCO Securities. He added that substantial call writing around the 24,000 level is adding pressure on any upward movement. Dhameja said that a failure to hold the 23,500 support could trigger further decline in Nifty, with critical levels at 23,300-23,000.

Analysts warn that the overall market correction could deepen, as sentiment has shifted from a 'buy the dip' to a 'sell on rise' approach. "The sentiment has shifted decisively," said Kunal Rambhia, Fund Manager at The Streets, as traders look to exit on any short-term recovery.Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Australian shares edge higher after a three-day fall as Wall Street traders responded to a US inflation print that was in line with expectations.

The S&P/ASX 200 Index rose almost 0.37% or 30.6 points to close at 8,224.

In the broader market, traders responded to a U.S. inflation print that was in line with expectations by ramping up bets of a Federal Reserve rate cut next month, though the monetary policy outlook for 2025 and beyond was clouded by Trump's return to office, Reuters reported.

On the domestic front, Australia's unemployment rate was unchanged at 4.1% in October in line with analysts' expectations, data from the Australian Bureau of Statistics showed. Australian firms added 36,800 jobs in October, resulting in over 14.5 million employed people.

Australia's corporate watchdog said its focus next year will be on protecting consumers bearing the brunt of rising cost-of-living pressures by clamping down on wrongdoing across the financial sector, Reuters reported.

Analysts at ANZ Research maintained their view that the Reserve Bank of Australia (RBA) will deliver its first rate cut in February 2025 after the latest data showed that the unemployment rate stayed at 4.1% in October.

They noted that while the labor market remains resilient, employment growth's moderation and the lower-than-expected wage print may make it easier for the central bank to begin unwinding its restrictive policy.

In company news, GrainCorp's net profit declined 75% to AU$61.8 million in the fiscal year ended Sept. 30 from AU$249.7 million a year ago. Company shares fell nearly 3% on market close.

Xero reported earnings of NZ$0.62 per share for the six months ended Sept. 30, up from NZ$0.35 per share a year ago. Analysts polled by Visible Alpha expected NZ$0.73. The company's shares were up more than 6% at market close and earlier hit an all-time high.

Orica reported an attributable net profit after tax of AU$524.6 million for the 12 months ended Sept. 30, up 77% from AU$295.7 million in the year-ago period. Analysts polled by Visible Alpha expected AU$522 million.

The BSE Sensex rose 106 points or 0.1% to 77.797 in morning trade on Thursday, halting losses in the previous two sessions, supported by gains from the realty, consumer durables, auto, metals, and banking sectors.

US inflation data lifted sentiment as consumer prices rose in line with expectations, raising hopes that the Fed would rate cut in the December meeting.

Traders profit taking after the BSE Sensex fell to its over four-month low in the previous session amid persistent foreign outflow and disappointing earnings results.

However, rising domestic inflation capped the gains, dampening hopes of a rate cut by the RBI soon.

The Nifty 50 climbed to nearly 23,6000, with heavyweight Eicher Motor soaring over 7%, set for their best day in a year after posting an 8% yoy net profit, better-than-expected.

Other early gainers were Kotak Bank (1.2%), Power Grid (1.2%), and Hindalco (1.1%).

NSE MD and CEO Ashish Chauhan said the 45 new inclusions in the F&O segment was a decision based on algorithm, and that many of these names were waiting in the wings for a while.

Speaking at CNBC-TV18's Global Leadership Summit on November 14, Chauhan the names were included after these stocks became more liquid in terms of trading volumes, and large enough for them to enter the derivative segment.

Track Live updates from the CNBC-TV18 Global Leadership Summit 2024 right here.

These stocks, prominent among them are Zomato, BSE, Jio Financial, Avenues Supermart, Paytm and others, will be available for trading from November 29 onwards in the futures and options segment. The National Stock Exchange's circular said details regarding the lot size, quantity limits etc for these securities will issued on November 28.

Next week onwards, trading in Bank Nifty's weekly contract - which used to garner heavy derivative interest and volumes - will not take place, as previous indicated by market regulator Sebi. At its peak in February this year, the overall options trading had reached $6 trillion in notional value.

Responding to this development, Ashish Chauhan recalled that when NSE had started, it used to handle 10,000 trades a day, which has now swelled to 30 crore trades, so a mild scale down is not a concern. "Even if one comes down a little, it is several thousand times larger," he said. Market participants have been voicing concern that such a development may impact the revenue of the stock exchanges, going forward.

Chauhan added that the intention of the regulator here is to protect to common investor. "Whenever regulators have tightened regulation, markets have become safer, and participants have come," he said.

Chauhan said the regulator has the benefit of receiving signals from all sides of the market, not just from few participants. "As regulators, we get a lot of signal from all corners, while (market) participants only see their side of the signals." seeing the micro as well as the macro picture. "Never second guess the regulator on regulatory tightness.""I have seen both sides, being the regulated and also the regulator. For me, when markets have to be protected, if trust is not there and people are losing money, then Sebi has to take notice, and no one should have an argument with Sebi on that," Chauhan added.

MARKET WRAPS

Watch For:

EU GDP, industrial production; trading updates from Burberry Group, Hapag-Lloyd, Aviva, Siemens, Deutsche Telekom, Spirax Group, Swiss Re, Telecom Italia, E.ON, FirstGroup, CVC Capital Partners, Merck KGaA, B&M European Value Retail, 3i Group, United Utilities Group

Opening Call:

European stock futures pushed slightly higher, even as a stronger dollar weighed on Asian equities. Treasury yields were steady, while oil and gold futures fell.

Equities:

Stock futures edged higher early Thursday as traders parsed the prospect of a rate cut by the Federal Reserve next month after U.S. consumer inflation data.

The latest CPI report likely wasn't enough to derail another interest-rate cut from the Fed in December. But together with solid consumer spending and steady hiring, firmer inflation could kick off a bigger debate at officials' next meeting over whether to slow the pace of rate cuts early next year.

Traders upped their bets that Fed officials would cut rates by a quarter point at their next meeting in December, rather than standing pat.

Investors' positive response to the report might have been driven in part by relief that President-elect Donald Trump and the Fed won't immediately be at loggerheads.

Focus today will be on U.S. producer-price index data and the second reading for eurozone gross domestic product, as well as more corporate earnings, including Burberry and Siemens.

Forex:

The dollar strengthened against most G-10 and Asian currencies amid trade-protectionism fears that could underpin the greenback's safe-haven appeal.

"The U.S. dollar remains very well bid," RBC Capital Markets' Alvin T. Tan said. Tan noted a WSJ report saying Robert Lighthizer is being considered for a "trade czar" role in Trump's administration. "Lighthizer (is) well-known for his advocacy of trade tariffs, and if he is indeed appointed as the trade czar, then it indicates that a protectionist trade agenda may be expected," Tan added.

Bonds:

Yields on U.S. government debt finished mixed overnight as traders weighed rising expectations for a quarter-point rate cut by the Fed in December against the potentially inflationary implications of the incoming Trump administration.

"The reacceleration in inflation may cause some indigestion for the market as inflation comes back into focus with the possibility of higher tariffs in the next administration, but this is probably not sufficient to alter the Fed course on interest rates in the next meeting," said Scott Helfstein, Global X's head of investment strategy. "We still expect a 25-basis-point cut in December, but the pace of cuts may be slow in 2025."

Energy:

Oil futures fell in Asia, as investors continue to digest OPEC's recent move to cut its forecast for global oil demand.

OPEC's revision adds additional pressure on crude oil prices, said Pepperstone strategist Quasar Elizundia. Investors are also awaiting upcoming demand estimates from the International Energy Agency, which may affect prices, the strategist said.

Metals:

Gold fell early Thursday as traders assessed mixed signals. While U.S. CPI data released overnight were in line with expectations, worries over possible inflationary pressures from the incoming Trump administration linger.

"In light of potential changes in Federal Reserve policy, investors remain cautious," XS.com's Antonio Di Giacomo said. "A pause in rate cuts could make non-yielding assets like gold less attractive than instruments like bonds," he added.

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Markets remain concerned that China's recent stimulus measures will do little to improve demand for copper, ANZ said. Copper demand is expected to peak around the end of this decade, ANZ said, citing state-backed government researcher Beijing Antaike Information Development.

For copper demand to strengthen, China has to release more economic stimulus measures, warns Eagle Metal International, a major copper importer in China.

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Iron ore futures fell as supply continues to grow, ANZ said. Iron ore shipments from Australia's leading terminal, Port Hedland, totaled 45.6 million metric tons in October. This brings this year's total to 472.3 million tons, the highest level for the period in four years, ANZ said.

TODAY'S TOP HEADLINES

U.S. Debt Will Likely Weigh on Monetary Policy, Says Fed's Schmid

Kansas City Federal Reserve President Jeff Schmid said Wednesday that the "tremendous" growth of government debt will leave an imprint on U.S. monetary policy, but he doesn't expect the larger deficits to drive up inflation in the long run.

In prepared remarks at the Dallas Fed's Energy and the Economy conference on Wednesday, Schmid addressed what many consider to be a major economic concern-the rising national debt. Schmid cited debt as one of several longer-term trends, including growth in labor productivity and an aging population, that he believes will shape the environment for monetary policy in the coming years.

Fed's Musalem Says 2% Inflation Target Is in Sight. He's Still Cautious.

Federal Reserve Bank of St. Louis President Alberto Musalem is keeping an eye on the potential for a rebound in inflation. He expects interest rates to remain in restrictive territory for some time.

"This may well be the last mile on the journey to price stability, and I believe the economy will reach the destination with appropriate monetary policy," Musalem said at the Economic Club of Memphis in Memphis, Tenn. on Wednesday. "There is more work to do."

Producer Inflation Data May Have Picked Up in October

Producer price data on Thursday might look like a setback in the last mile of the Federal Reserve's inflation fight, but it isn't likely to sway policymakers from a December interest-rate cut. Wholesale inflation is forecast to pick up in October after holding steady in September.

The Bureau of Labor Statistics will release the producer price index for October on Thursday at 8:30 a.m. ET. The consensus forecast from economists tracked by FactSet calls for a 0.2% rise in the PPI last month, versus no change in September. The year-over-year increase is expected to jump to 2.3%, from 1.8% a month earlier.

Trump and Putin's Avowed Personal Rapport Masks Deeper Tensions

President-elect Donald Trump has styled himself a master dealmaker who can leverage his warm relationship with Russian President Vladimir Putin to end the war in Ukraine, cool tensions between the world's biggest nuclear powers and realign global politics.

But that can-do image is at odds with the two leaders' records and the new geopolitical reality. Trump and Putin failed to cut deals on everything from arms control to Ukraine during his first term, and the gulf between the two countries has only widened since he left office.

Amazon Launches 'Haul' to Sell Low-Priced Items to Compete with Temu, Shein

Amazon.com is launching a new section to its app focused on items that cost $20 or less as the e-commerce leader looks to fend off rising competition from low-cost platforms Temu and Shein.

Amazon said the offering, dubbed Amazon Haul, was available to some customers in the U.S. starting Wednesday.

Advanced Micro Devices to Cut Global Headcount by 4%

Advanced Micro Devices is reducing its global workforce by 4% after reporting that most of the growth it sees comes from its AI chips and other products for data centers.

Shares fell 2.2% to $140.44 in midday trading. The stock has dropped 4.8% since the beginning of the year, though is up 19% over the past 12 months.

X Names New CFO as Musk Shifts Focus to Trump Administration

Elon Musk's X Corp. named Mahmoud Reza Banki chief financial officer, filling out the executive ranks at his social-media site as his attention shifts to cutting U.S. government spending for the incoming Trump administration.

Banki, the former CFO of streaming platform Tubi, joined X in November, according to his LinkedIn profile and a person familiar with his hiring. Banki was pardoned by former President Donald Trump in a case connected to 2010 charges for making false statements. He was also charged at the time with violating sanctions against Iran, but those charges were later overturned on appeal.

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Expected Major Events for Thursday

00:01/UK: Oct RICS Residential Market Survey

06:00/FIN: Oct CPI

07:00/SWE: Oct CPI

07:00/ROM: 3Q Evolution of GDP (estimated data)

07:30/HUN: Sep Construction

08:00/SPN: Oct CPI

08:00/SVK: 3Q Flash estimate of GDP

08:00/SVK: 3Q Flash estimate of total employment

08:30/NED: Sep International trade

08:30/NED: 3Q GDP - 1st estimate

08:30/NED: Sep Consumer Spending

09:00/POL: 3Q Flash estimate GDP

09:00/FRA: Nov IEA Oil Market Report

09:00/BUL: 3Q Flash Estimate GDP

09:30/UK: 3Q Mortgage and landlord possession statistics

10:00/CYP: 3Q GDP (Flash Estimate)

10:00/EU: 3Q Flash Estimate GDP

10:00/EU: 3Q Flash estimate employment EU and euro area

10:00/EU: Sep Industrial Production

11:00/FRA: Sep OECD Harmonised Unemployment Rates

15:59/UKR: Sep Trade

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This article is a text version of a Wall Street Journal newsletter published earlier today.

New Zealand's benchmark S&P/NZX 50 index rose 0.15% to close at 12,693 on Thursday as investors assessed the latest U.S. inflation data and the Federal Reserve's interest rate outlook.

Data showed that consumer inflation in the US rose as expected, keeping the Fed on track to deliver another interest rate cut in December.

However, market sentiment remains somewhat uneasy about the inflationary possibilities of Donald Trump’s incoming administration.

In domestic news, food prices in New Zealand fell 0.9% in October compared to the previous month, reinforcing the Reserve Bank's view that inflation is under control.

On the corporate front, banks Westpac and ANZ added 3.2% and 1.1%, respectively.

Meanwhile, health technology stocks struggled, with Fisher & Paykel down 0.5%, Ebos Group falling 0.9%, and AFT Pharmaceuticals shedding 2.75%.